The Supplier System in Chinese Automobile Industry: The Case of FAW Volkswagen
DEStech Transactions on Economics Business and Management
Recently, the Chinese automobile industry has achieved remarkable progress. Both production and sales volumes in China have been rapidly increasing. Based on the overall auto sale volume in China, over 50 percent of production volume belongs to joint-venture manufacturers. In order to investigate competitive strategies of the Chinese automobile industry, the study of automobile companies and their supplier systems (SS) are necessary. In the current research, the joint venture manufacturer FAW
... Automobile Co. Ltd., (FAW VW), which is a leading automobile company with high performance in the Chinese market, is taken as an example. Through applying the comparative study methodology, as well as the investigation and analysis methods based on FAW-VW and its supplier system, the drawback of the current supplier system has been identified. The major implication of the proposed study is that inter-organizational relationships of FAW-VW and its suppliers are becoming stronger during the progress of solving problems while the development and production systems are still relying much on suppliers 1 .